The Zero Moment of Truth

Finance Study – Investments

Google/Shopper Sciences, U.S.
April 2011
SUMMARY
• While the majority research their decision for 2 weeks or longer, almost
one-quarter of shoppers began researching their investment a day or less
before completing their transaction.

• While shoppers are using a wide array of sources, ZMOT is the most
dominant.
• Online Search and information gathering from brand controlled websites showed higher
usage compared to FMOT sources such as in-person discussions with representatives.

• Shoppers clearly identify experiences with financial representatives as

the most influential – Talked to a customer service representative in-
person.
• Comparison shopping investment firms online was also very influential to shoppers.

2
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
Objectives & Methodology

How is investment account activation changing in a digitally powered

world?

What role do new media like social & mobile in driving consumers to
open new investment accounts?

How effective are traditional ads at changing actual purchasing?

Online shopper surveys with interactive

game-like construct

Fielded in March 2011 in the US

Adults who switched to a new investment

firm, opened a new investment account or
purchased/traded stock/ purchased a Gov’t
Bond or Treasury Bill in the past 6 months

N=250 shoppers
3
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
Traditional 3-Step Mental Model of Marketing

Stimulus First Second

Moment of Moment of
Truth Truth
Open new Experience
investment
account and/or
traded stock/
bonds

4
The New Mental Model of Marketing

Stimulus First Second

Moment of Moment of
Truth Truth
Pre-shopping | Open new Experience
In-store | In-home investment
account and/or
traded stock/
bonds

5
We asked investment shoppers…

When? Purchase Timeline

How far in advance do shoppers start thinking about buying/selling
investments and/or opening up a new account?

What? Source Usage

What traditional and new media sources did shoppers use to help
them decide on the investment selection?

How? Influence
How influential were each of the sources in the ultimate
decision making?

Why? Information-Seeking
Why did shoppers consult the internet? What information where they looking
for related to the investment selection process?

Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011 6
While the majority research their decision for 2 weeks or longer,
almost one-quarter of shoppers began researching their
investment a day or less before completing their transaction.
Length of Purchase Cycle

12% 12%
7% 8% 10% 6% 8% 6% 1% 1% 6%
5% 5% 4% 3% 4%
2%
More than a year

7-12 months before

4-6 months before

2-3 months before

A month before

3 weeks before

2 weeks before

A week before

4-6 days before

2-3 days before

One day before

9-12 hours before

5-8 hours before

3-4 hours before

1-2 hours before

Within the hour of my

before I completed
A few moments

the transaction
transaction
before

Q1 Again, for the rest of this survey we would like to focus on your most recent transaction: PIPE IN FROM QS6.
First, in TOTAL, how long were you thinking about [PIPE] before you actually completed the transaction?
Base N=250
7
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
 Investment shoppers used on average 8.9
sources of information to help them make their
purchase decision

8.9 20%
sources average usage

For any one source, on average 20% of

shoppers used it.
Q2 When you were considering [INSERT], what sources of information did you seek out
to help with your decision?
Base N=250
8
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
Even among above average sources, ZMOT
outpaces traditional avenues of research.
Sources Used – Above the 20% Average Usage Score

Read magazine articles about the product 36%

Read newspaper articles 36%

Stimulus
Read an email received from a financial services
organization
29%
Received mail at home from a financial services
organization
28%

Searched online with a search engine 60%

Sought information from a financial services
organization website
49%

Talked with friends / family 48%

ZMOT
Read reviews about the product / company
online
39%
Read comments following an article / opinion
piece online
30%

Comparison shopped investment firms online 27%

Talked with a financial services organization
46%
representative in-person FMOT
Talked with a customer service representative on
the phone
31%
Read brochure / pamphlet in a financial services
organization office / location
31%

Q2 When you were considering [INSERT], what sources of information did you seek out to help with your
decision?
Base: N=250 9
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
Shoppers rely on ZMOT sources for
investments

94%

79% 79%

Stimulus ZMOT FMOT

Q2 When you were considering [INSERT], what sources of information did you seek out to help with your
decision?
Base: N=250 10
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
Most influential sources for investment
shoppers
Talked with a financial services organization representative in-person 72%
Comparison shopped investment firms online 64%
Talked with friends / family
54%
Talked with a customer service representative on the phone
53%
Sought information from a financial services organization website 52%
Read reviews or endorsements about the product / company online 44%
Read magazine articles / reviews / information about the product 41%
Searched online, used search engine
Read brochure / pamphlet in a financial services organization office /
40% 33%
location 34% Average
Read comments following an article / opinion piece online 33%
Read information in an email received from a financial services
organization 32%
Read newspaper articles / reviews / information 23%
Received mail at home from a financial services organization (e.g., 23%
catalogue, brochure)
Saw advertisements on television 19%
Noticed advertising while browsing online 13%
Below Average Net Influence
Q5 We’d like you to tell us how influential each of these sources of information was to you at the time. Please
select a number from 1-10 for each of the sources below where 1 is “least influential” and 10 is “most influential.”
You may select any number in between 1 and 10. 11
Base N=250; Base sizes vary by source. See appendix.
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
Top reasons for investment shoppers to
consult the internet
Above Average Shown

Read reviews on a particular financial services

organization location 24%

Bookmarked pages with information you want

to save for future reference 23%

Called a financial services office / location

from phone number provided online 23%

Set price alerts to be notified when the product

reaches your desired price 19%

Used internet to request additional information

(e.g., brochure) be sent to me 19%
Printed out information to take to the financial
services office / location 17%
Got information on a particular financial
services office / location (hours, parking, etc.) 17%
Found locations of the financial services
organization 17%
Compared to information found in newspapers
or magazines 16%

Q8 Below are some ways that other people say they use the Internet when researching a financial decision.
Which of the following things did you do during your recent transaction, [PIPE]? You may select as many as
apply. 12
Base N=250
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
Post Purchase Behavior

Mentioned it to friends/family 47%

Mentioned it to a co-worker 19%

Likely due to the
Took a survey 10% personal subject
Wrote a customer review on a matter of this
website 8% category, only
18% of shoppers
Wrote about it on a Facebook page 7% shared their
experiences
Wrote about it in a blog 5%
digitally
Posted Tweets about it 4%

None of the above 46%

Q7 After [PIPE], which of the following activities did you do to share your experience?
Base N=250

Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011 13
Heat Maps
The intersection of when, what, how and why
Searched online with a search engine

Fewest People Most People

60% Usage 72% Repeat
Usage

10
19%
9
8

Degree of Influence
25%
7
6 48%
5
4 36%

3
40%
2
1
52%
More than a
year before
4-12 months
before

2-3 mos before

1 month before

2-3 weeks
before

1 week before

2-6 days before

1 day before

1-2 hours
before

Within the hour

§ Convenience/Trading Platforms Preferences

§ Convenience/Customer Service Preferences
§ Online access to account information
§ Features & Benefits of Different Account Options
Time From Purchase § Reputation of Company/Financial Organization
§ Fees/Costs/Pricing Associated with Product/Service
Base N=250

Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011 15
Talked with friends & family

Fewest People Most People

48% Usage 23% Repeat
Usage

10
13%
9
8

Degree of Influence
20%
7
6 18%
5
4 28%

3
52%
2
1
25%
More than a
year before
4-12 months
before

2-3 mos before

1 month before

2-3 weeks
before

1 week before

2-6 days before

1 day before

1-2 hours
before

Within the hour

§ Convenience/Trading Platforms Preferences

§ Convenience/Customer Service Preferences
§ Online access to account information
§ Features & Benefits of Different Account Options
Time From Purchase § Reputation of Company/Financial Organization
§ Fees/Costs/Pricing Associated with Product/Service
Base N=250

Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011 16
Saw advertisements on television

Fewest People Most People

20% Usage 4% Repeat
Usage

10
16%
9
8

Degree of Influence
16%
7
6 35%
5
4 29%

3
33%
2
1
27%
More than a
year before
4-12 months
before

2-3 mos before

1 month before

2-3 weeks
before

1 week before

2-6 days before

1 day before

1-2 hours
before

Within the hour

§ Convenience/Trading Platforms Preferences

§ Convenience/Customer Service Preferences
§ Online access to account information
§ Features & Benefits of Different Account Options
Time From Purchase § Reputation of Company/Financial Organization
§ Fees/Costs/Pricing Associated with Product/Service
Base N=250

Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011 17
SUMMARY
• While the majority research their decision for 2 weeks or longer, almost
one-quarter of shoppers began researching their investment a day or less
before completing their transaction.

• While shoppers are using a wide array of sources, ZMOT is the most
dominant.
• Online Search and information gathering from brand controlled websites showed higher
usage compared to FMOT sources such as in-person discussions with representatives.

• Shoppers clearly identify experiences with financial representatives as

the most influential – Talked to a customer service representative in-
person.
• Comparison shopping investment firms online was also very influential to shoppers.

18
Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011
Appendix
Shoppers 18-34 used more sources on average, were more likely
to share their experience through SMOT and to use the Online
Social and Mobile to research their purchase.
18-34 35-49 50+
(n=46) (n=62) (n=107)

Average # sources
used 17.5 10.5 7.9

Tactical Sharing/Social 35% Sharing/Social 22% Sharing/Social 14%

Internet Mobile 33% Mobile 16% Mobile 5%
Behaviors Additional Media 8% Additional Media 15% Additional Media 4%

96% 93%
82% 84%
77%
71% 69% 68%
57% 60%
53%
40%
Mental Model
Breakdown
Stimulus ZMOT FMOT SMOT Stimulus ZMOT FMOT SMOT Stimulus ZMOT FMOT SMOT

Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011 20
While men research their investments slightly more,
women are more likely to share their final decision with
others. Males Females
(n=124) (n=118)

Average # sourced used 10.0 9.0

Compared to other Compared to other

25% 15%
Tactical media media
Internet
Behaviors

90% 87%
69% 71%
62% 62%
53%
45%

Mental Model Breakdown

Stimulus ZMOT FMOT SMOT Stimulus ZMOT FMOT SMOT

Source: Google/Shopper Sciences, Zero Moment of Truth Study – Investments, Apr 2011 21